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Case Study : Oprah Winfrey and OWN

From childhood poverty and sexual abuse and her battle with weight loss, Oprah’s drive and charisma have made her the “near-perfect spokesperson for eternal optimism” in the psyche of her followers. Her influence is unparalleled. The Oprah Winfrey Show has been described as one of the most successful daytime programs in TV history. She launched O magazine that boasts a circulation rate of about 2.5 million, launched the TV careers of now-famous TV personalities like Dr. Oz, Dr. Phil, and Rachael Ray, and the designer Nate Berkus. Anything she endorses or mentions in a favorable light becomes an instant best seller in its category. As one writer puts it, “Her brand could sell everything from croissants to refrigerators.” It is estimated that Oprah’s net worth is about $3 billion. In January 2008, Oprah and Discovery Channel announced the launching of OWN (Oprah Winfrey Network). It is a 50–50 partnership in which Discovery would invest $100 million in the new network that would focus on Oprah’s mantra— “Live Your Best Life.” Experts point out that “startups in today’s fragmented media market tend to be moguls’ pipe dreams.” They cite the struggles of Rupert Murdock and Martha Stewart as examples. So, why would this charismatic figure after 25 years of ruling daytime TV give it all up to take the biggest risk and gamble of her professional life? The answer according to Oprah is that she is ready to get “out of the chairs and into the hearts of peoples’ lives.” She adds, “I want to expand Americans’ views of people in the world.” Her vision is to use OWN as the platform to impact as many people as possible. Asked how she would define success in her next chapter, Oprah said, “The truth is … I’m not one of those people who says ‘Oh, if I change just one person’s life.… Nope, not satisfied with just a few. I want millions of people!” Since its launch, the network’s average viewership has fallen from 204,000 to 153,000 people as of May 15, 2011. According to David Zaslav, CEO of Discovery, which owns half of OWN, “the ratings have been below expectations.” After such a rough start and many changes by Oprah, OWN began to show signs of growth and profitability in 2013. She has surprised industry experts, who did not think she could do it. Oprah is showing that she has the leadership skills to transform a failing network, thus earning her claim as not just a charismatic but a transformational leader as well.

1 OPENING CASE QUESTIONS:

1. Why was Oprah (and possibly still is) such a popular and admired figure on TV?

2. Is Oprah’s charisma more of a function of her personal qualities or the environment?

3. What effects has Oprah’s charisma had on her followers?

4. Does Oprah embody the example of a socialized charismatic leader or a personalized charismatic leader?

5. What qualities of charismatic leadership does Oprah possess?

6. Is Oprah a transformational leader, a charismatic leader, or both?

7. Oprah seems to have a clear sense of her personal meaning or purpose in life. What factors do you think have contributed to her understanding?